Lapid’s move came after he was told “funds were allegedly transferred from settlements to the Yesha Council," which represents Israelis living in the West Bank, a statement late Saturday read, according to news agency Agence France Presse.

The statement added that the minister has ordered an investigation into the matter, AFP reported.

According to Israeli anti-settlement think-tank Molad, the Israeli government has already transferred 148 million shekels (some $42 million) to West Bank settlements as compensation to make up for property taxes not collected on structures not yet built, according to AFP.

Lapid's decision to halt the funds to the settlements comes amid an increase in the international campaign to boycott Israeli settlements, which are considered illegal under international law.